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  • December 14, 2024
Uber questioned by American regulator about subscription plan

Uber questioned by American regulator about subscription plan

Uber has been questioned by the US Federal Trade Commission (FTC) about its subscription plan, the company said in a statement.

As Bloomberg first reported, the US consumer watchdog was investigating the taxi giant over the service’s registration and cancellation procedures.

Uber One, which has more than 25 million subscribers worldwide, offers paying members discounts on rides and deliveries.

The FTC did not immediately respond to a request for comment from BBC News.

“We will continue to answer any questions the FTC has about our cancellation policy,” an Uber spokesperson said.

“Uber One’s cancellation process follows both the letter and the spirit of the law: Uber One members can easily cancel their membership in the app – in fact, the majority of those cancellations take 20 seconds or less.”

The FTC contacted Uber with a proposal to settle the investigation, and the company has since written back with a counteroffer.

Other tech companies, including Adobe and Apple, have faced lawsuits from the FTC over cancellation policies that the regulator deemed complex or overly complex.

These claims have been disputed by the companies.

Last month, the FTC finalized a “click to cancel” rule, which aims to make it easier for people to cancel subscriptions.

The new rule, which is being challenged by several business groups, would force companies to make it equally easy to sign up and cancel subscriptions.

A law introduced in Britain in May also targets so-called subscription traps.

The Digital Markets, Competition and Consumers Act 2024 requires companies to provide clear information to consumers before entering into a subscription agreement.

It forces merchants to remind customers that a free or low-cost trial period is coming to an end.

It also requires companies to ensure that customers can easily terminate a contract.